Chapter in book

Insurance in the Anthropocene: Exposure, Solvency and Manoeuvrability

Authors/Editors

Publication Details

Author list: Simpson N

Editor list: Holley C, Phelan L, Shearing C

Publisher: Routledge

Place: London

Publication year: 2021

Title of series: Criminology at the Edge

Total number of pages: 23

ISBN: ISBN 9780367192303

URL: http://dx.doi.org/10.4324/9780429201172-9


Abstract

This chapter outlines how insurers are responding to emerging harmscapes and the potential role they play in the governance of climate risk. It illustrates a case study of how one short-term insurer is grappling with three general challenges facing the industry and its regulators, those of climate risk exposure, solvency and manoeuvrability. It describes the in-house deliberation of a sub-group of decision makers at South Africa’s largest insurer, exploring their consideration of key practical and strategic issues relating to how climate change and climate variability will impact on their business. Workshops and interviews identified the Insurer’s anticipation and evolving approach to future risks, which do not match well with the insurer’s conventional and existing risk assessment approach. The chapter synthesises empirical observations of workshop discussions and interviews with the emerging literature on insurance and climate risk, the Insurer’s performance reports and evolving regulatory developments. Contemporary constraints highlight the potential role of insurance regulators, augmented risk management approaches, client awareness, and carbon disclosure as potential means of facilitating adaptation. These observations highlight both the aspired for potential of the industry and insurer-specific obstacles to the role short-term insurers can play in climate risk governance.


Projects

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Keywords

Climate change, corporate governance, Finance, Floods, Governance, Insurance, Natural disasters, Regulation


Last updated on 2021-19-03 at 19:54